Calif. Court Holds Homeowners to Stipulation of Settlement Terms

LOS ANGELES - A California appellate court has affirmed a trial court order upholding the terms of a stipulated settlement between homeowners and their insurer despite the homeowners' contention that the agreement mistakenly released contract as well as bad faith claims. Watson v. Interinsurance Exchange of the Automobile Club, No. B187048 (Calif. App., 2nd Dist.).

In an unpublished opinion issued on Nov. 13, California's 2nd Appellate District rejected the homeowners' arguments that the mediated 'Stipulation' was only a tentative agreement or that language releasing the carrier from all claims was a mutual mistake.

Louis and Priscilla Watson appealed an order …